The old Instagram is dead.
The
titan’s founders, Kevin Systrom and Mike Krieger, left the company in
September of this year. The platform will now be run by longtime
Facebook vet Adam Mosseri.
Normally, the
departure of your founding executives would seem reason to pull a
company fire alarm. Evidence of trouble. But the departure in this case
is actually a good thing––for both sides.
Here’s why.
1. Instagram’s founders can now go back to doing what they’re best at.
It takes a special set of minds to create something as game-changing as Instagram.
But,
as any successful founder knows, starting and running a company are two
very different things. In the beginning, founders are almost purely
creatives, problem-solvers running on inspiration—their work changes
minute by minute, day by day.
The head of a
machine as large as modern-day Instagram, on the other hand, has
different priorities. They’re going to focus on things like:
- Profitability
- Data
- Long-term value.
Furthermore,
Instagram now exists under the umbrella of Facebook, which means
heightened expectations. Facebook wants Instagram to serve as part of
its big data program,
while moving in on the market share carved out by Snapchat. That’s
likely not what Instagram’s founders imagined when they first started
the business.
What Instagram needs, now, is a leader who can commit to those new goals and expectations without friction or pause.
The
new Head of Instagram can do just that. Systrom and Krieger, meanwhile,
can bring their prestige and marketability to whichever venture they
take part in next.
That marketability will
prove insanely valuable. One of the chief goals of a startup is gaining
exposure––reaching as many people as quickly as possible. With their
experience and reputations, Systrom and Krieger will be kingmakers.
2. Instagram gets to keep growing.
It’s easy to demonize buyouts. After all, mergers can actively harm competition. And there’s a long history of buyouts turning sour for companies.
But since the buyout in 2012, Instagram has exploded.
Before,
Instagram was a growing app of 30 million users. It was a popular
startup that captured the ideas and hearts of creatives and influencers
across the world. But it needed Facebook’s prestige to become the
massive success it is today. Instagram is now one of the most well-known
social networks in the world, with more than a billion active members.
It
comes down to basics: Facebook has an infrastructure the original
Instagram team could only dream of. By integrating the photo-sharing
platform within a network of billions of existing users, Facebook
created a new audience for the site. The user base blew up, as did
Instagram’s cultural impact.
With
the departure of its founders, and a Facebook exec placed at the
company’s head, Instagram will become more integrated within Mark
Zuckerberg’s system. Which means it’s further integrated into a network
of 2.2 billion users.
That’s a lot of follows and likes.
3. Facebook benefits, too.
For Facebook, the change in Instagram’s leadership will prove an intelligent decision.
For
one thing, promoting from within will allow them to double down, as it
were, on their mission to integrate Instagram more completely into
Facebook. This creates a stronger revenue model in that it benefits
Facebook’s advertisers and consumers.
The
impact to advertising will be particularly impressive. Instagram will
soon flip the script in this field with tools like integrated shopping,
wherein users will be able to buy Christmas gifts from straight from
their favorite accounts. If you love the sweater Selena Gomez’s dog is
wearing in a Story, you can purchase it from the actual page.
And that’s only the beginning.
With plans to compete directly with Youtube,
for example––not to mention a commitment to further refine smash-hit
features like Stories––Instagram will continue to play an important part
of Facebook’s future.
While buyouts and the
departure of the company’s founders sounds rocky, in the end, both of
these moves can only help Instagram. The departure of Systrom and
Krieger will prove a boon to the startup world. And Mosseri, as the new
head of the company, will help make the new Instagram an even stronger
app for advertisers, users, and its parent company alike.
No comments:
Post a Comment